Vodafone and Altice launch 7 billion euro German broadband company

Vodafone

Britain's Vodafone and France's Altice launched a joint venture on Monday to challenge Deutsche Telekom and build a 7 billion euro ($6.8 billion) fibre broadband network in Germany.

Vodafone said the FibreCo venture would build a "fibre-to-the-home" broadband network available to 7 million German homes, allowing the British operator to upgrade its existing network in Germany, its biggest market.

FibreCo will invest up to 7 billion euros on the six-year project, which is expected to be 70% financed by debt.

Construction will be contracted to Altice subsidiary Geodesia, with Vodafone Germany responsible for marketing the faster broadband to new customers.

Both companies will own 50% in FibreCo.

The tie-up is subject to regulatory approval and expected to close in the first-half of 2023.

"This partnership builds on Vodafone's significant next-generation network with Altice's industrial expertise and proven fibre-to-the-home construction capabilities," said Vodafone Chief Executive Nick Read.